Duterte creates bank for OFWs

A new bank dedicated to providing financial services to Overseas Filipino Workers is expected to open soon.

President Duterte has approved the acquisition of the Philippine Postal Savings Bank Inc. by the Land Bank of the Philippines and its conversion into the Overseas Filipino Bank.

In Executive Order No. 44, the President said the PPSB, geared towards developing the rural financial sector, is strategically equipped to provide financial and remittance services to Filipinos overseas and their families.

“Subject to the necessary approval and or clearance of the Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Philippine Deposit Insurance Corp., and the Philippine Competition Commission, the acquisition of PPSB by LBP though transfer of shares and its consequent conversation into an Overseas Filipino Bank is hereby approved, in accordance with existing laws, rules, and regulations,” Duterte said in the order.

Duterte noted that OFWs, who contribute to the country’s economic growth through their remittances, should be “given provision of priority support for their growing financial needs.”

“There is a need to establish a policy bank dedicated to provide financial products and services tailored to the requirements of overseas Filipinos, and focused on delivering quality and efficient foreign remittance services,” Duterte said.

The Postbank, created in 1906 and revitalized as PPSB in 1994, serves as a government thrift bank that provides financial credit to the rural sector. It is a subsidiary of the Philippine Postal Corp.

The President directed the PPC and the Bureau of Treasury to transfer their shares in PPSB to Land Bank at zero value. The PPSB has also been directed to transfer all assets, liabilities, and other records to LBP.

Duterte also ordered the Land Bank to infuse the necessary capital to OFB to attain its agenda of servicing the financial and banking needs of OFWs.